So confused re: benefits

desperate+determined

Looking for some advice in plain easy to understand wording not the jargon used by HMRC lol

Situation 2010/11

1 dependant in full time education
No Childcare (my grandparents help before and after school)
Partner Earned- (50hrs pw) £22K
I Earned: (38hrs pw) £18K
Total Income: £40K
Awarded basic £10.40 ish a week

Situation 2011/12

2 Dependants

• 1 FT education (as above - no childcare)
• 1 born 12th April (15wks) (if i return to work - oct- C/c cost £154pw (as grandparents to old to look after a baby)

Partner will Earn- (50hrs pw) £22K
I will Earn: £12K (currently on SMP and assuming i return to work in Oct doing 38hrs pw)
Total Income: £34K
Expected award: £10.40 ish no help for childcare

HMRC say that our 2011/12 figures do not qualify for W/T credit or Childcare Element. So we will still be entitled to the basic award. I find this hard to believe as jointly we'll be down £6K if this is the case I may as well surrendor and become unemployed as we wll not be able to afford childcare for our baby.

I have never not worked and don't look forward to this possibility. We love our children and work to provide a good lifestyle for them.

Any advice is grateful, does this sound right?

Thanks for taking time to read

Regards

DX2

desperate+determined wrote: »

I will Earn: £12K (currently on SMP and assuming i return to work in Oct doing 38hrs pw)

You need to knock off £100 per week IIRC when you are on maternity leave I think for 39 weeks max. I will have a look for the HMRC link for you to confirm this.

SMP is a taxable income, but for tax credits purposes £100 a week is ignored. You need to deduct £100 from your income for each week you received SMP.

If you were on maternity leave but your employer did not pay you SMP, you may have claimed Maternity Allowance instead. Do not include Maternity Allowance received as this is not counted as income for tax credits purposes.

http://taxcredits.hmrc.gov.uk/ntchelp/Content/English/glossary.htm#smp

flea72

but if you give up work, your CTC/WTC will only be about £3k/yr - so youd be even worse off than if you were working

F

karenx

Yes that sounds about right. WTC cut off is about 17k. Do you have to go back to work full time? Can you not do part time then its less childcare. Or do either of your employers offer childcare vouchers?